Web3 and the creator economy growth are hot topics in today’s tech industry. It is a decentralized system aiming to minimize the overuse of other technology platforms such as Amazon, Netflix, and YouTube, being an internet iteration.
If you have already embraced the idea of a startup, the first thing you need to learn is the pros and cons of launching a Web3 startup.
It’s also essential to familiarize yourself with common terms used, the blockers, how easy it is to undertake this process, and why you need a Web3 constructor from DEIP to help you implement your project.
This guide will walk you through the advantages and disadvantages of starting a Web3 startup, but first, let’s describe what Web3 is, shall we?
What is Web3?
Web3 can be regarded as a follow-up internet version developed to upgrade the previously used Web1 and Web2.
The first version limited users to basic activities such as publishing content and reading what others had published. Web1 also consisted of homepages and links with fewer uses than in the modern versions.
The next internet version was Web2, commonly referred to as the “write/read” internet model that enabled users to edit opened files and publish content on platforms like Craigslist and Tumblr. Social media platforms such as Instagram, Twitter, and Facebook were developed in the Web2 era.
Despite the free connections and networking sites, the general public conflicted with Web2 data harvesting practices. This breach of data birthed an alternative tech that promised better protection. And this is when Web 3 sought to correct the inconveniences caused by Web2.
There are risks of launching a Web3 startup, but the benefits surpass them. This internet version offers you a chance to read and write content and own it under maximized security.
Unlike the previous phases that only offer a platform to use free tech for data exchange, this enables you to govern and operate protocols independently. With Web3, you can be a shareholder and participant of the ongoing activities instead of only being a customer, data holder, or viewed as a product.
The shares used in Web3 operations are referred to as cryptocurrencies or tokens, offering you blockchain ownership. This decentralized network gives you privileges based on the number of tokens under your name.
For instance, governance token owners have voting rights facilitated by their assets. They can pass decisions such as launching a decentralized lending platform or other future projects.
Why launch a Web3 startup in the creator economy landscape?
As mentioned earlier, Web3 startup is an essential requirement for modern technology solutions. It comes with a staunch infrastructure to enhance your blockchain transactions efficiently and transparently. Under Web3, projects have been launched to ensure that payments are faster and secure without involving third parties.
Supply chain professionals can also apply a similar concept and reasoning, reducing added costs through transparent transactions. This setting will also enhance coordination between trade partners as they efficiently trade with traceable products within the chain.
Another benefit of launching a Web3 startup is using a decentralized network offering your businesses a vast utility under blockchain technology, unlike applications or platforms developed on servers under a centralized authority. This gives it more immutability and transparency, thus enabling you to launch your business on applications with a largely distributed logic under multiple nodes of blockchain.
The Web3 startup comes with bridging solutions bound to facilitate the housing of blockchain applications under the new generation. APIs on the off-chain web appear in different forms on the blockchain. You require oracles such as Chainlink and API3 before feeding the web with external data, following the strict consensus mechanism of Web3.
API3 oracles offer solutions quickly and easily by covering all issues that third-party oracles use while enabling API providers to offer their direct services to decentralized applications.
Starting a Web3 startup should be an easy task, preceded by thorough research. You can also hire a renowned modern Web3 constructor. For example, DEIP’s Casimir is a Web3 constructor, ready to take you through the process from the starting point to successful completion.
After analyzing the benefits of launching a Web3 startup, it’s also essential to understand the risks of launching a Web3 startup.
Pros of launching a Web3 startup
Now that you’ve got some clue on the benefits of launching a Web3 startup, below is a list of pros of starting off that’ll help you make a more informed decision:
As an end-user of Web3, you will acquire total ownership of your information under encryption or tight security. This differs from the data-sharing activities performed by previous web versions that were sold to large tech organizations, marketers, and advertisers. You cannot share the data unless you issue permission or under the case-by-case process.
Quick Data Access
Web3 enables you to access information quickly, backed by cloud applications and smartphone usage. Your data will also be reflected on all your devices, and you can get it from any place.
Eliminating the central base of data control assures you of maximum privacy. Ethereum is an example of applied blockchain offering a safe platform for data encryption with tight, strict, and unbreakable rules. This protects your data from common leakages under intermediaries such as Google or Apple. Decentralization blocks spying entities or the government from interfering with your sites, services, and identities.
Using Web3, you don’t require permission to build a blockchain address or interact on the platform; the access authority to these sites is permissionless and free from getting overstated. You can also transfer your tokens quickly and efficiently at any location in the world. Additionally, all users are welcome regardless of sociological and geographical factors, such as gender, orientation, income, among other personal aspects.
Web3 has staunch measures reducing instances of service denial or account suspension. This stability minimizes disruptions, and you can still access your data from the multiple backups placed on the nodes.
Cons Of Launching A Web3 Startup
Even though Web3 comes with many advantages, it also has some downsides. Let’s look at the risks of launching a web3 startup:
Slow dApp integration
You may encounter slow services when running your applications on Web3. The speed is lower than Web2, which functions under a centralized system. For instance, Twitter uses a Twitter API that posts on your behalf after tweeting. The application also maintains a lightweight structure, offering fast results on Web2, unlike Web3, which lacks this option.
Lack of stability to run a multi-platform
You may require multiple SDKs that act as libraries to manage the integration and operations on Web3. This development is still underway and may result in additional costs because the SDKs are relatively expensive to acquire.
Weigh it up
Starting a Web3 startup is the current trend in the tech space as it marks the future of technology and supports creator economy trends.
Like any startup field, it is advisable to understand the advantages and disadvantages of starting a Web3 startup to clear any doubts about your project.
For best results, think about using the DEIP Web3 constructor and watch your startup thrive within a short period of founding it.